Issue Revision

9 1

The Statement of Use of System

Charges
Effective from 1 April 2013

Based Upon:

The Statement of the Connection Charging Methodology

and
The Statement of the Use of System Charging Methodology

contained within

Section 14 Parts I and II respectively

of the Connection and Use of System Code
The Statement of Use of System Charges April 2013

Contents
INTRODUCTION 3
SCHEDULE 1 4
Basis of 2013/14 Transmission Network Use of System Charges 4
Schedule of Transmission Network Use of System Wider Zonal Generation
Charges (/kW) in 2013/14 6
Schedule of Transmission Network Use of System Local Substation Generation
Charges (/kW) in 2013/14 8
Schedule of Transmission Network Use of System Local Circuit Charges (/kW) in
2013/14 9
Schedule of Transmission Network Use of System STTEC and LDTEC Charges
in 2013/14 11
Schedule of Pre-Asset Transfer Related Embedded Transmission Use of System
Charges in 2013/14 15
Schedule of Transmission Network Use of System Demand Charges (/kW) and
Energy Consumption Charges (p/kWh) for 2013/14 16
Zonal Maps applicable for 2013/14 18
SCHEDULE 2 20
Detail of the Incentive Schemes (External and Internal) for the Balancing Services
Use of System Charges for 2013/14 20
External Incentive Structure and Payments for 2013/14 20
SCHEDULE 3 22
Application Fees for Connection and Use of System Agreements 22
Reconciliation and Refunding of Application Fees for Connection and Use of System
Agreements 22
Entry Application Fees for New Bilateral Agreements 23
Exit Application Fees for New Bilateral Agreements and Modifications to existing
Bilateral Agreements 26
Examples 26
Bilateral Agreement Types 27
Generator Types 28
SCHEDULE 4 29
Charge-Out Rates for Engineering Charges for Variable Price Applications 29
SCHEDULE 5 30
Non-Capital Components applicable for Maintenance and Transmission Running
Costs in Connection Charges for 2013/14 30
Part A: Site Specific Maintenance Charges 30
Part B: Transmission Running Costs 30
Illustrative Connection Asset Charges 31
APPENDIX 1: ILLUSTRATIVE CONNECTION ASSET CHARGES 32
2013/14 First Year Connection Charges based on the RPI Method (6% rate of
return) 32
Connection Examples 34
APPENDIX 2: EXAMPLES OF CONNECTION CHARGE CALCULATIONS 37

2
 April 2013 The Statement of Use of System Charges

Introduction
This statement is published in accordance with the Transmission Licence of National Grid
Electricity Transmission plc (National Grid).

This document sets out the annual tariffs for Transmission Network Use of System charges and
the parameters used to calculate these; details of the Balancing Services Incentive Scheme
which forms part of the Balancing Services Use of System Charges; and fees charged by
National Grid in relation to applications for connection, use of system and engineering works.

Further information on the methods by which and principles upon which National Grid derives
Use of System charges is set out in the Statement of the Use of System Charging
Methodology which is included in Section 14 of the Connection and Use of System Code
(CUSC) which is available on our website at:

http://www.nationalgrid.com/uk/Electricity/Codes/systemcode/contracts/

If you require further detail on any of the information contained within this document or have
comments on how this document might be improved please contact our Charging Team,
preferably by email at:

Charging.enquiries@uk.ngrid.com

or at:

National Grid House

Warwick Technology Park
Gallows Hill
Warwick
CV34 6DA

Telephone 01926 654633

3
The Statement of Use of System Charges April 2013

Schedule 1
Basis of 2013/14 Transmission Network Use of System Charges

The Transmission Network Use of System Charges for 2013/14 found within this document
have been calculated using the methodology described in the Statement of Use of System
Charging Methodology. Part of the tariff calculation utilises a DC Load Flow (DCLF) Investment
Cost Related Pricing (ICRP) transport and tariff model. The following tables provide a summary
of some of the parameters utilised to calculate tariffs within this model.

Table 1.1: TNUoS Calculation Parameters

Parameter Value/Basis

Transport model network, nodal generation & Based upon data published in the October
nodal demand data update of the 2012 GB Ten Year Statement

Reference node ECLA40_WPD

Expansion constant 12.514404 /MWkm
Annuity factor 5.8%
Overhead factor 1.8%
Locational onshore security factor 1.8
Offshore civil engineering discount 0.392321 /kW

Table 1.2: Onshore Wider Cable and Overhead Line (OHL) Expansion Factors

TO Region Cable Expansion Factor OHL Expansion Factor

400kV 275kV 132kV 400kV 275kV 132kV

Scottish Hydro Electric

10.20 11.45 20.77 1.00 1.20 2.59
Transmission Ltd

SP Transmission Ltd 10.20 11.45 22.58 1.00 1.20 2.87

National Grid Electricity

10.20 11.45 22.58 1.00 1.20 2.87
Transmission plc

Table 1.3 Onshore Local Expansion Factors (All TO Regions)

132kV
2dp 400kV 275kV Single Double Single Double
Circuit Circuit Circuit Circuit
<200MVA <200MVA >=200MVA >=200MVA
Cable
Expansion 10.20 11.45 22.58 22.58 22.58 22.58
Factor
OHL
Expansion 1.00 1.20 10.33 8.388 5.912 3.950
Factor

4
 April 2013 The Statement of Use of System Charges

Table 1.4 Offshore Local Expansion Factors

Offshore Power Station Local Expansion

Factor (to 2 d.p.)
Barrow 95.29
Gunfleet 83.15
Robin Rigg East 144.21
Robin Rigg West 144.21
Walney I 61.71
Walney 2 59.00
Ormonde 71.32

Further Local Expansion Factors used to calculate Local Circuit Tariffs applicable to generation
connecting to offshore transmission infrastructure during 2013/14 will be published in future
revisions of this statement following the completion of the tender process relating to the sale of
the relating offshore transmission assets.

5
The Statement of Use of System Charges April 2013

Schedule of Transmission Network Use of System Wider Zonal Generation Charges (/kW)
in 2013/14

Table 1.5

The following table provides the Wider Zonal Generation TNUoS tariffs applicable from 1st
April 2013.

Tariff
Zone Zone Name
(/kW)
1 North Scotland 25.418971
2 East Aberdeenshire 22.795139
3 Western Highlands 26.146895
4 Skye and Lochalsh 30.251919
5 Eastern Grampian and Tayside 21.546049
6 Central Grampian 19.750208
7 Argyll 18.515568
8 The Trossachs 16.491922
9 Stirlingshire and Fife 16.403825
10 South West Scotland 15.529814
11 Lothian and Borders 12.836108
12 Solway and Cheviot 11.072685
13 North East England 8.641032
14 North Lancashire and The Lakes 7.475188
15 South Lancashire, Yorkshire and Humber 6.342092
16 North Midlands and North Wales 5.184032
17 South Lincolnshire and North Norfolk 3.486470
18 Mid Wales and The Midlands 2.442909
19 Anglesey and Snowdon 7.409039
20 Pembrokeshire 5.566128
21 South Wales 2.916588
22 Cotswold 0.038756
23 Central London -4.442372
24 Essex and Kent 0.191397
25 Oxfordshire, Surrey and Sussex -1.692437
26 Somerset and Wessex -3.045193
27 West Devon and Cornwall -5.165609

The above tariffs are a combination of a locational element that reflects the cost of providing
incremental capacity to generation on an area of the main integrated onshore transmission
system, and a non-locational residual element which ensures that the appropriate amount of
transmission revenue is recovered from generators. For 2013/14 the generation residual
element to two decimal places is 4.81/kW.

Wider Generation charges are levied by reference to the Transmission Licensees substation to
which the party is connected or deemed connected. Transmission Licensees substations are
assigned to a generation zone as shown on the zonal maps.

If a party is unclear from looking at the geographical map which zone the relevant National Grid
substation is assigned to, then those parties should refer to the electrical version of the map of
Generation Use of System Tariff Zones as at 1 April 2013 for clarification. Confirmation of the
zoning of a particular generator can be obtained by contacting National Grids Charging Team.

Small Generators Discount

6
 April 2013 The Statement of Use of System Charges

In accordance with Licence Condition C13 in National Grids Transmission Licence, small
generators connected to the 132kV transmission system are eligible for a reduction in the listed
Generation TNUoS tariffs. This discount has been calculated in accordance with direction from
the Authority and equates to 25% of the combined generation and demand residual components
of the TNUoS tariffs. For 2013/14, this figure has been calculated as 7.554625/kW.

7
The Statement of Use of System Charges April 2013

Schedule of Transmission Network Use of System Local Substation Generation Charges

(/kW) in 2013/14

Table 1.6 Onshore Local Substation Tariffs (/kW)

The following table provides the Local Substation Generation TNUoS tariffs applicable to all
generation directly connected to the onshore GB Transmission Network from 1st April 2013,
which have been updated from the examples listed in the Statement of Use of System
Methodology.

Local Substation Tariff

(/kW)
Sum of TEC at connecting
Connection Type 132kV 275kV 400kV
Substation
<1320 MW No redundancy 0.170242 0.097389 0.070170
<1320 MW Redundancy 0.375029 0.232032 0.168754
>=1320 MW No redundancy - 0.305358 0.220836
>=1320 MW Redundancy - 0.501319 0.365922

The above tariffs reflect the cost of the transmission substation equipment provided to facilitate
generation connecting to an onshore substation.

Table 1.7 Offshore Local Substation Tariffs (/kW)

The following table provides the Local Substation Generation TNUoS tariffs applicable to
generation connecting to offshore transmission infrastructure from 1st April 2013:

Offshore Power Station Local Substation

Tariff (/kW)
Robin Rigg East -0.392321
Robin Rigg West -0.392321
Gunfleet Sands 1 & 2 14.846982
Barrow 6.860212
Ormonde 21.208091
Walney 1 18.303588
Walney 2 18.170471

Further local substation tariffs applicable to generation connecting to offshore transmission

infrastructure during 2013/14 will be published in future revisions of this statement following the
completion of the tender process relating to the sale of the relating offshore transmission assets.

8
 April 2013 The Statement of Use of System Charges

Schedule of Transmission Network Use of System Local Circuit Charges (/kW) in 2012/13

Table 1.8

The following table provides the Local Circuit Generation TNUoS tariffs applicable to directly
connected generation not connected to the main integrated onshore GB Transmission Network
from 1st April 2013.

Local
Local Circuit
Substation Circuit Tariff Substation
Tariff (/kW)
(/kW)
Aigas 0.532870 Gordonbush 3.471641
An Suidhe 1.168344 Griffin Wind 2.716439
Andershaw 2.419695 Hadyard Hill 2.456480
Arecleoch 0.070890 Harestanes 4.298391
Baglan Bay 0.551331 Hartlepool 0.501224
Black Hill 1.358788 Hedon 0.153662
Black Law 0.847831 Invergarry -0.581974
BlackCraig 1.035744 Kilbraur 1.716958
Blacklaw Extension 2.480808 Killingholme 0.462343
Bodelwyddan -0.020948 Kilmorack 0.145763
Carraig Gheal 3.729895 Langage 0.558254
Cleve Hill 0.316029 Leiston 0.949384
Clyde (North) 0.092990 Lochay 0.310292
Clyde (South) 0.107538 Luichart 0.963647
Corriemoillie 2.834257 Marchwood 0.323835
Coryton 0.292862 Margee 0.887781
Cruachan 1.523844 Mark Hill -0.742416
Crystal Rig 0.347728 Millennium Wind 1.378502
Culligran 1.469615 Mossford 3.174368
Deanie 2.414367 Nant -1.042073
Dersalloch 1.551461 Neilston 1.051057
Didcot 0.215154 Newfield 3.708713
Dinorwig 2.038433 Quoich 1.680574
Edinbane 5.805051 Rocksavage 0.014980
Ewe Hill 2.351184 Saltend South 0.288949
Fallago 0.921448 South Humber Bank 0.714896
Farr Windfarm 1.898463 Spalding 0.259617
Ffestiniogg 0.214882 Staycain Windfarm 1.292750
Finlarig 0.271506 Teesside 0.060462
Foyers 0.647927 Ulzieside 3.828217
Glendoe 1.559692 Whitelee 0.089990
Glenmoriston 1.119925 Whitelee Extension 0.250172

The above tariffs reflect the cost of transmission circuits between the point of connection and
the main interconnected transmission system.

9
The Statement of Use of System Charges April 2013

Table 1.9

The following table provides the Local Circuit Generation TNUoS tariffs applicable to generation
connecting to offshore transmission infrastructure from 1st April 2013:

Offshore Power Station Local Circuit Tariff

(/kW)
Robin Rigg East 25.987914
Robin Rigg West 25.987914
Gunfleet Sands 1 & 2 13.630692
Barrow 35.892622
Ormonde 39.508687
Walney 1 36.451548
Walney 2 36.772688

Further local circuit tariffs applicable to generation connecting to offshore transmission

infrastructure during 2013/14 will be published in future revisions of this statement following the
completion of the tender process relating to the sale of the relating offshore transmission assets.

10
 April 2013 The Statement of Use of System Charges

Schedule of Transmission Network Use of System STTEC and LDTEC Charges in 2012/13

Table 1.10

The following table provides the Short Term Transmission Entry Capacity (STTEC) and Limited
Duration Transmission Entry Capacity (LDTEC) tariffs applicable to generators from 1st April
2013.

LDTEC tariff (/kW

Short Term Generation Tariff (/kW)
per week)
Power Station 28 Days 35 Days 42 Days
Higher Lower
STTEC STTEC STTEC
rate rate
Period Period Period
Aberthaw 0.179440 0.013122 0.717760 0.897201 1.076641
Aigas 1.371409 0.100290 5.485637 6.857047 8.228456
An Suidhe 1.042343 0.076226 4.169372 5.211715 6.254059
Arecleoch 0.827975 0.060549 3.311899 4.139873 4.967848
Baglan Bay 0.194247 0.014205 0.776990 0.971237 1.165485
Barking 0.022230 0.001626 0.088920 0.111150 0.133380
Barrow 2.636971 0.192840 10.547885 13.184856 15.821827
Barry 0.153121 0.011198 0.612483 0.765604 0.918725
Black Law 0.727345 0.053190 2.909378 3.636723 4.364067
Brimsdown 0.022230 0.001626 0.088920 0.111150 0.133380
Carraig Gheal 0.981005 0.071740 3.924020 4.905025 5.886030
Clunie 1.140105 0.083375 4.560421 5.700526 6.840632
Clyde (North) 0.683891 0.050012 2.735562 3.419453 4.103343
Clyde (South) 0.684654 0.050068 2.738617 3.423272 4.107926
Cockenzie 0.686077 0.050172 2.744309 3.430387 4.116464
Connahs Quay 0.291373 0.021308 1.165490 1.456863 1.748236
Corby 0.128253 0.009379 0.513011 0.641264 0.769516
Coryton 0.034283 0.002507 0.137133 0.171416 0.205699
Cottam 0.291373 0.021308 1.165490 1.456863 1.748236
Cottam Development Centre 0.291373 0.021308 1.165490 1.456863 1.748236
Cowes 0.000000 0.000000 0.000000 0.000000 0.000000
Cruachan 0.950941 0.069542 3.803763 4.754703 5.705644
Crystal Rig 0.701011 0.051264 2.804044 3.505055 4.206066
Culligran 1.420588 0.103887 5.682354 7.102942 8.523531
Damhead Creek 0.018908 0.001383 0.075632 0.094540 0.113448
Deanie 1.470188 0.107514 5.880752 7.350940 8.821128
Deeside 0.291373 0.021308 1.165490 1.456863 1.748236
Derwent 0.000000 0.000000 0.000000 0.000000 0.000000
Didcot 0.000000 0.000000 0.000000 0.000000 0.000000
Didcot B 0.000000 0.000000 0.000000 0.000000 0.000000
Didcot GTs 0.000000 0.000000 0.000000 0.000000 0.000000
Dinorwig 0.507586 0.037119 2.030345 2.537931 3.045517
Drax 0.352171 0.025754 1.408683 1.760854 2.113024
Dungeness B 0.018908 0.001383 0.075632 0.094540 0.113448
Dunlaw Extension 0.682833 0.049935 2.731334 3.414167 4.097000
Edinbane Wind 1.901929 0.139087 7.607715 9.509643 11.411572
Eggborough 0.352171 0.025754 1.408683 1.760854 2.113024
Errochty 1.140105 0.083375 4.560421 5.700526 6.840632
Fallago 0.731131 0.053467 2.924525 3.655656 4.386788
Farr Windfarm 1.443103 0.105533 5.772412 7.215515 8.658618

11
The Statement of Use of System Charges April 2013

LDTEC tariff (/kW

Short Term Generation Tariff (/kW)
per week)
Power Station 28 Days 35 Days 42 Days
Higher Lower
STTEC STTEC STTEC
rate rate
Period Period Period
Fasnakyle G1 & G3 1.381650 0.101039 5.526599 6.908248 8.289898
Fawley 0.000000 0.000000 0.000000 0.000000 0.000000
Fawley CHP 0.000000 0.000000 0.000000 0.000000 0.000000
Ferrybridge B 0.359279 0.026274 1.437116 1.796395 2.155674
Ffestiniog 0.288556 0.021102 1.154224 1.442780 1.731335
Fiddlers Ferry 0.359279 0.026274 1.437116 1.796395 2.155674
Fife 1.354185 0.099031 5.416740 6.770925 8.125110
Finlarig 1.060078 0.077523 4.240311 5.300388 6.360466
Foyers 1.373625 0.100452 5.494500 6.868125 8.241750
Glandford Brigg 0.272162 0.019903 1.088647 1.360808 1.632970
Glendoe 1.463534 0.107027 5.854134 7.317668 8.781201
Glenmoriston 1.440446 0.105339 5.761783 7.202229 8.642675
Gordonbush 1.521870 0.111293 6.087480 7.609350 9.131220
Grain 0.029259 0.002140 0.117037 0.146296 0.175555
Grangemouth 0.861201 0.062979 3.444803 4.306004 5.167205
Great Yarmouth 0.128253 0.009379 0.513011 0.641264 0.769516
Greater Gabbard 0.178095 0.013024 0.712382 0.890477 1.068572
Griffin Wind Farm 1.293470 0.094590 5.173879 6.467348 7.760818
Gunfleet Sands I 1.623331 0.118713 6.493322 8.116653 9.739984
Gunfleet Sands II 1.623331 0.118713 6.493322 8.116653 9.739984
Gwynt y Mor 0.271062 0.019823 1.084248 1.355310 1.626371
Hadyard Hill 0.824253 0.060277 3.297012 4.121265 4.945518
Harestanes 0.815919 0.059668 3.263677 4.079596 4.895515
Hartlepool 0.492150 0.035991 1.968600 2.460751 2.952901
Heysham 0.411658 0.030104 1.646633 2.058291 2.469950
Hinkley Point B 0.000000 0.000000 0.000000 0.000000 0.000000
Hunterston 0.818999 0.059893 3.275997 4.094996 4.913995
Immingham 0.341819 0.024997 1.367278 1.709097 2.050916
Indian Queens 0.000000 0.000000 0.000000 0.000000 0.000000
Invergarry 1.351096 0.098805 5.404384 6.755480 8.106576
Ironbridge 0.137112 0.010027 0.548449 0.685562 0.822674
Keadby 0.281021 0.020551 1.124085 1.405106 1.686128
Kilbraur 1.429749 0.104556 5.718997 7.148746 8.578495
Killingholme (NP) 0.376444 0.027529 1.505775 1.882219 2.258662
Killingholme (Powergen) 0.376444 0.027529 1.505775 1.882219 2.258662
Kilmorack 1.351086 0.098804 5.404345 6.755431 8.106517
Kingsnorth 0.018908 0.001383 0.075632 0.094540 0.113448
Langage 0.000000 0.000000 0.000000 0.000000 0.000000
Lincs Wind Farm 0.183040 0.013386 0.732159 0.915198 1.098238
Little Barford 0.137112 0.010027 0.548449 0.685562 0.822674
Littlebrook D 0.018908 0.001383 0.075632 0.094540 0.113448
Lochay 1.062114 0.077672 4.248456 5.310570 6.372684
London Array 0.026640 0.001948 0.106559 0.133199 0.159839
Longannet 0.887520 0.064904 3.550080 4.437600 5.325120
Luichart 1.394025 0.101944 5.576101 6.970126 8.364151
Marchwood 0.000000 0.000000 0.000000 0.000000 0.000000
Mark Hill 0.781451 0.057147 3.125805 3.907257 4.688708

12
 April 2013 The Statement of Use of System Charges

LDTEC tariff (/kW

Short Term Generation Tariff (/kW)
per week)
Power Station 28 Days 35 Days 42 Days
Higher Lower
STTEC STTEC STTEC
rate rate
Period Period Period
Medway 0.029259 0.002140 0.117037 0.146296 0.175555
Millennium Wind 1.454021 0.106331 5.816084 7.270105 8.724126
Mossford 1.510088 0.110432 6.040352 7.550440 9.060528
Nant 0.926296 0.067739 3.705185 4.631481 5.557777
Oldbury-on-Severn 0.010972 0.000802 0.043890 0.054862 0.065834
Ormonde 3.580078 0.261808 14.320313 17.900391 21.480469
Orrin 1.343434 0.098244 5.373735 6.717168 8.060602
Pembroke 0.311433 0.022775 1.245731 1.557163 1.868596
Peterborough 0.183040 0.013386 0.732159 0.915198 1.098238
Peterhead 1.208926 0.088408 4.835706 6.044632 7.253559
Quoich 1.469880 0.107491 5.879519 7.349399 8.819279
Ratcliffe-on-Soar 0.147464 0.010784 0.589855 0.737318 0.884782
Robin Rigg East 1.925085 0.140780 7.700338 9.625423 11.550508
Robin Rigg West 1.925085 0.140780 7.700338 9.625423 11.550508
Rocksavage 0.276632 0.020230 1.106528 1.383160 1.659792
Roosecote 0.392447 0.028699 1.569789 1.962237 2.354684
Rugeley B 0.137112 0.010027 0.548449 0.685562 0.822674
Rye House 0.018908 0.001383 0.075632 0.094540 0.113448
Saltend 0.360311 0.026349 1.441245 1.801557 2.161868
Seabank 0.010894 0.000797 0.043577 0.054471 0.065366
Sellafield 0.392447 0.028699 1.569789 1.962237 2.354684
Severn Power 0.165303 0.012088 0.661210 0.826513 0.991815
Sheringham Shoal 0.128253 0.009379 0.513011 0.641264 0.769516
Shoreham 0.000000 0.000000 0.000000 0.000000 0.000000
Shotton 0.000000 0.000000 0.000000 0.000000 0.000000
Sizewell B 0.137112 0.010027 0.548449 0.685562 0.822674
Sloy G2 & G3 0.874764 0.063971 3.499054 4.373818 5.248582
South Humber Bank 0.379351 0.027742 1.517406 1.896757 2.276109
Spalding 0.205529 0.015030 0.822117 1.027646 1.233175
Staythorpe 0.291373 0.021308 1.165490 1.456863 1.748236
Sutton Bridge 0.191899 0.014033 0.767597 0.959496 1.151396
Taylors Lane 0.000000 0.000000 0.000000 0.000000 0.000000
Teesside 0.469010 0.034298 1.876040 2.345051 2.814061
Thanet 0.010048 0.000735 0.040193 0.050242 0.060290
Tilbury B 0.022230 0.001626 0.088920 0.111150 0.133380
Toddleburn 0.682833 0.049935 2.731334 3.414167 4.097000
Torness 0.682755 0.049929 2.731021 3.413776 4.096532
Uskmouth 0.172810 0.012637 0.691240 0.864049 1.036859
Walney I 3.267092 0.238920 13.068368 16.335460 19.602552
Walney II 3.276963 0.239642 13.107853 16.384816 19.661779
West Burton 0.291373 0.021308 1.165490 1.456863 1.748236
West Burton B 0.291373 0.021308 1.165490 1.456863 1.748236
Whitelee 0.825153 0.060343 3.300611 4.125763 4.950916
Whitelee Extension 0.833562 0.060958 3.334249 4.167811 5.001373
Wilton 0.469010 0.034298 1.876040 2.345051 2.814061
Wylfa 0.397834 0.029093 1.591337 1.989171 2.387005

13
The Statement of Use of System Charges April 2013

The above tariffs apply to levels of STTEC or LDTEC access that is agreed during the charging
year.

STTEC can be arranged in 4, 5, or 6 week blocks, with the tariff for applicable duration applying.

The LDTEC tariff is applied at two rates during the year. The higher LDTEC rate applies to the
first 17 weeks of access within a charging year (whether consecutive or not), and the lower
LDTEC rate applies to any subsequent access within the year.

Further LDTEC and STTEC tariffs applicable to generation connecting to offshore transmission
infrastructure during 2013/14 will be published in future revisions of this statement following the
completion of the tender process relating to the sale of the relating offshore transmission assets.

14
 April 2013 The Statement of Use of System Charges

Schedule of Pre-Asset Transfer Related Embedded Transmission Use of System Charges

in 2013/14

Table 1.11

The following table provides the Pre-Asset Transfer Related Embedded Transmission Use of
System (ETUoS) tariffs applicable to embedded transmission connected offshore generation
from 1st April 2013. The relating charge is used to recover the element of the Offshore
Transmission Operators Revenue that relates to distribution charges paid during in the
development of the offshore transmission network.

Offshore Power Station Pre-Asset Transfer

ETUoS Tariff
(/kW)
Robin Rigg East 8.054851
Robin Rigg West 8.054851
Gunfleet Sands 1 & 2 2.547655
Barrow 0.891263
Ormonde 0.314851
Walney 1 -
Walney 2 -

Please note that in addition to the charges listed above, any enduring distribution charges made
to the NETSO will be passed through to the relating generator in the form of an ETUoS charge.

Further Pre-Asset Transfer Related ETUoS tariffs applicable to generation connecting to

offshore transmission infrastructure during 2013/14 will be published in future revisions of this
statement following the completion of the tender process relating to the sale of the relating
offshore transmission assets.

15
The Statement of Use of System Charges April 2013

Schedule of Transmission Network Use of System Demand Charges (/kW) and Energy
Consumption Charges (p/kWh) for 2013/14

Table 1.12

The following table provides the Zonal Demand and Energy Consumption TNUoS tariffs
applicable from 1st April 2013.

Demand Demand Tariff Energy Consumption

Zone Area
Zone (/kW) Tariff (p/kWh)
1 Northern Scotland 11.048877 1.515130

2 Southern Scotland 16.789820 2.362577

3 Northern 22.346537 3.079732

4 North West 25.184470 3.651462

5 Yorkshire 25.485035 3.508859

6 N Wales & Mersey 25.631093 3.665429

7 East Midlands 28.213308 3.956866

8 Midlands 29.201069 4.148986

9 Eastern 29.891866 4.153363

10 South Wales 27.541773 3.685374

11 South East 32.827362 4.564101

12 London 34.083066 4.601445

13 Southern 33.752057 4.741274

14 South Western 33.551731 4.598152

A demand User's zone will be determined by the GSP Group to which the User is deemed to be
connected.

The Demand Tariff is applied to Demand Users average half-hourly metered demand over the
three Triad periods, as described in the Statement of Use of Charging Methodology. Demand
Tariffs are a combination of a locational element that reflects the cost of providing incremental
capacity to demand on an area of the main integrated onshore transmission system, and a non-
locational residual element which ensures that the appropriate amount of transmission revenue
is recovered from demand Users. For 2013/14 the demand residual element to two decimal
places is 25.41/kW.

In the case of parties liable for both generation and demand charges, the demand tariff zone
applicable in respect of that partys demand will be that in which the Transmission Licensees
substation to which the party is connected is geographically located. For example, if a power
station were connected at a Transmission Licensees substation that is geographically located
within demand zone 1, it would pay the zone 1 demand tariff.

16
 April 2013 The Statement of Use of System Charges

The energy consumption tariff is based on the annual energy consumption during the period
16:00 hrs to 19:00 hrs (i.e. settlement periods 33 to 38 inclusive) over the relevant financial year.

Small Generators Discount

In accordance with Standard Licence Condition C13 governing the adjustments to use of system
charges for the small generators discount, a unit amount of 0.193724/kW to the demand tariff
and 0.027027p/kWh to the energy consumption tariff has been included on a non-discriminatory
and non-locational basis.

Standard Licence Condition C13 requires the small generators discount mechanism to be
revenue neutral over the period of its operation so that the net effect on revenue of the licence
condition is zero. It will therefore be necessary to manage any under or over recovery
associated with the small generators discount separately from the under/over recovery
mechanism within National Grids main revenue restriction. National Grid calculates the unit
amount added to the demand tariffs using a forecast of the total discount payable to eligible
generators, and a forecast of the demand charging base. If either of these factors outturns
differently from the original forecast then an under/over recovery would occur. The amount of
any under/over recovery would be added to the revenue recovery used to derive the unit amount
in subsequent years.

17
The Statement of Use of System Charges April 2013

Zonal Maps applicable for 2013/14

Generation Use of System Tariff Zones (Geographical map as at 1 April 2013)

3 5

6
7 9
11
8
10
12 13

14
15

19
16
17

18

20 21
23
22
24
26
27 25

18
 April 2013 The Statement of Use of System Charges

Demand Use of System Tariff Zones (Geographical map as at 1 April 2008)

G.B. SYS. FIGURE A.1.4

GB DEMAND USE OF SYSTEM

Dounreay
Thurso TARIFF ZONES 2008/09
Mybster 400kV Substations
Stornoway Cassley
275kV Substations
Dunbeath 132kV Substations
400kV Circuits
Lairg
THE SHETLAND ISLANDS 275kV Circuits
Shin
Brora 132kV Circuits

Mossford
Major Generating Sites
Grudie
Bridge
Alness Including Pumped Storage
Conon
Orrin Elgin Fraserburgh
Luichart
Ardmore

Dingwall
Macduff St. Fergus Connected at 400kV
Deanie Keith
Culligran
Aigas
Kilmorack
Inverness Nairn
Blackhillock
Strichen Connected at 275kV
Dunvegan Peterhead
Beauly Hydro Generation
Fasnakyle
Dyce

Glen Kintore Persley

Broadford Morrison
Woodhill Willowdale
Foyers
Ceannacroc Boat of
Fort Augustus Clayhills
Garten
Tarland Craigiebuckler
Redmoss
Invergarry
Quoich

Fort William
Rannoch
Errochty Errochty Power Station
Clunie
Fiddes

Bridge of Dun
1
Tummel Lunanhead
Bridge Tealing
Cashlie
Dudhope Arbroath
Lochay
Lyndhurst Milton of Craigie

Taynuilt Killin Charleston

Cruachan Dalmally Finlarig Burghmuir Dudhope
Glenagnes

Nant St. Fillans

Clachan
SCOTTISH HYDRO-ELECTRIC Cupar

TRANSMISSION
Inveraray
Glenrothes
Sloy Leven

Devonside Westfield
Redhouse

2
Whistlefield Stirling
Kincardine Glenniston
Port Mossmorran
Dunfermline
Ann Longannet
Bonnybridge Inverkeithing
Dunoon Helensburgh Grangemouth Shrubhill Cockenzie
Devol Strathleven Telford Rd. Portobello Dunbar
Spango
Moor Broxburn Gorgie
Torness
Valley
Erskine Cumbernauld Bathgate Whitehouse
Inverkip Lambhill
Easterhouse
Livingston Kaimes
Currie
Newarthill
Clydes
Neilston Mill
Hunterston Berwick
Farm
Wishaw
Hunterston Busby
Strathaven
Kilwinning East Blacklawl
Whitelee
Kilmarnock Kilbride
Saltcoats South Linmill
Town
Eccles
Carradale Meadowhead Galashiels
Kilmarnock
South Coalburn
Ayr SP TRANSMISSION LTD.
Coylton
Elvanfoot Hawick

Maybole

NGC

Gretna Blyth
Dumfries Ecclefechan
Auchencrosh
Fourstones
Newton
Stewart
Tynemouth
Chapelcross Harker South Shields
Stella

3
West West Boldon
Glenluce Tongland
Offerton

Hawthorne Pit
Hart Moor
Spennymoor
Hartlepool
Saltholme Tod Point
Grangetown
Norton Greystones

Lackenby

4
Hutton

Heysham Quernmore
Poppleton Osbaldwick

Thornton
Bradford
Stanah

Penwortham
Padiham
West

Elland
Kirkstall
Skelton
Grange Monk
Fryston

Drax
Creyke Beck
Saltend North
Saltend South
Killingholme
5
Eggborough Humber Refinery
Rochdale Ferrybridge
Keadby South
Washway
Farm Kearsley Whitegate Templeborough Thorpe Humber
West Marsh Grimsby
Kirkby Bank
South Melton
Lister Stalybridge West
Wylfa Manchester Stocksbridge Pitsmoor West
Drive Rainhill Aldwarke
Carrington Bredbury Winco Bank Burton
Birkenhead Thurcroft
Neepsend
Fiddlers Daines Sheffield City
Ferry
Jordanthorpe Brinsworth Cottam
Capenhurst Frodsham
Norton Lees
Pentir Macclesfield
Deeside Chesterfield

7
High
Dinorwig Marnham

Staythorpe
Legacy Cellarhead
Ffestiniog
Bicker
Fenn
Willington
Trawsfynydd Ratcliffe

Drakelow Walpole
Rugeley Spalding

6 Shrewsbury
Ironbridge

Penn
Bushbury
Willenhall Bustleholm
Hams Enderby
North
Norwich
Main

9
Nechells
Hall
Ocker
Hill Coventry
Oldbury

8
Kitwell Berkswell

Sizewell
Burwell
Feckenham Main
Bishops Grendon Eaton
Wood Socon

Patford Bramford

10
Bridge
East
Claydon Sundon
Pelham
Wymondley
Leighton Braintree
Rassau Buzzard
Walham Rye House Waltham
Imperial Brimsdown Cross
Park Cowley
Swansea Watford Elstree Hackney
Pembroke Amersham Main
North
Cilfynydd Culham Tottenham Redbridge Warley Rayleigh Main
Baglan Whitson Minety Mill Hill
Upper Boat Uskmouth Didcot Willesden
Bay
Margam
Iron Acton Barking West Thurrock Coryton
Alpha Steel Iver Ealing Northfleet East
Pyle N.Hyde Singlewell
Seabank City Rd W.Ham Tilbury Grain
Cowbridge St Johns
Tremorfa Laleham Wood New Hurst
Cross Kingsnorth
Aberthaw Cardiff
East West Kemsley
Melksham Bramley Weybridge Chessington Rowdown Littlebrook
Beddington Canterbury
Fleet Wimbledon North

Alverdiscott
Hinkley Point

Bridgwater

Bolney
11 Sellindge

Taunton Nursling E de F
Dungeness
Marchwood Lovedean Ninfield
Axminster
Mannington Fawley Botley Wood

14 Exeter

Langage Abham
Chickerell
13 12
Landulph
Indian
Queens

ISSUE Q 14-03-08 41/18394 C Collins Bartholomew Ltd 1999

Draft For Approval

19
The Statement of Use of System Charges April 2013

Schedule 2
Detail of the External Incentive Scheme for the Balancing Services Use of System
Charges for 2013/14

The Balancing Services Use of System (BSUoS) Charges for 2013/14 calculated in accordance
with the methodology described in the Statement of Use of System Charging Methodology are
made up of External BSUoS Charges and Internal BSUoS Charges. The External BSUoS
Charges includes External Costs and an Incentive Scheme.
Included here are details of how the Incentive outlined in the Transmission Licence is
accommodated into BSUoS Charges.

External Incentive Structure and Payments for 2013/14

The forecast External incentive payment for the duration of the External incentive scheme
(FYIncpayEXTd) is calculated as the difference between the External Scheme target (Mt) and the
forecast Balancing cost (FBC) subject to sharing factors (SFt) and a cap/collar (CBt).

FYIncpayEXTd = SFt * ( M t FBC d ) + CBt

The relevant value of the External incentive payment (FYIncPayEXTd) is calculated by reference
to the table below by the selection and application of the appropriate selection factors and offset
dependent upon the value of the forecast Balancing Services cost (FBC) and the Incentive
Target Cost (ITC).

Table 2.1: BSIS for 2013/14

Forecast Balancing Cost (FBC) Mt SFt CBt

m m m m
FBC <
0 0 25
(Incentive Target Cost - 100)
(Incentive Target Cost -100) <=
Incentive Target
FBC < 25% 0
Cost
(Incentive Target Cost)

Incentive Target Cost =FBC FBC 0 0

(Incentive Target Cost)

Incentive Target
<= FBC < 25% 0
Cost
(Incentive Target Cost+100)
FBC >=
0 0 -25
(Incentive Target Cost + 100)

20
 April 2013 The Statement of Use of System Charges

In respect of each Settlement Day d, the forecast incentivised Balancing Cost (FBCd) will be
calculated as follows:

IBC
k =1
k
FBCd = d
* NDS
PFT
k =1
k

Where:

NDS: Number of days in Scheme

The Daily Incentivised Balancing Cost for a Settlement Day (IBCd) is calculated as follows:

IBCd = jd CSOBMjd + BSCCVjd + BSCCAd OMd RTd BSFSd

Wind Forecast Incentive (RFIIR)

The wind forecast incentive is an incentive scheme on the performance of National Grid with
regards to its level of accuracy in forecasting the levels of wind generation on the system at
the day ahead stage. The scheme allows a maximum monthly return of 250k at 0% error
and a maximum monthly loss of 250k at double the accuracy target.

21
The Statement of Use of System Charges April 2013

Schedule 3
Application Fees for Connection and Use of System Agreements

Application fees are payable in respect of applications for new connection agreements, certain
use of system agreements and for modifications to existing agreements based on reasonable
costs incurred by National Grid including where appropriate, charges from the Transmission
Owners (TOs) in accordance with their charging statements. The application process and
options available are set out in the Statement of the Use of System Charging Methodology and
the Statement of the Connection Charging Methodology.

The application fee is dependent upon size, type and location of the applicant's scheme as
shown on the map and tables on the next page. Users can opt for a variable price application
and pay an advance of the Engineering Charges based on the fixed prices shown, which will be
reconciled once the actual costs have been calculated using the charge out rates contained in
Schedule 3. Alternatively, onshore Users can opt to pay a fixed price application fee in respect
of New and Modified Bilateral Agreements. In some circumstances, where a given application
is expected to involve significant costs over and above those normally expected (e.g. substantial
system studies, special surveys, investigations, or where a Transmission Owner varies the
application fee charged to National Grid from the standard fee published in their charging
statements) to process an offer of terms, National Grid reserves the right to remove the option
for a fixed price application fee.

The map divides GB into three zones based on the Boundary of Influence map defined in
Schedule 4 of the STC (SO-TO Code). Zone A maps onto the area NGC South, Zone B maps
to NGC North and SPT South, and Zone C maps to SPT North, SHETL South and SHETL
North.

The application fees indicated will be reviewed on an annual basis and reflect any changes to
the Boundaries of Influence. It should be noted that the zone to which a particular user is
applying is determined by the location of the connection to the National Electricity Transmission
System and not by the geographical location of the Users plant and equipment.

All application fees are subject to VAT and are capped at 400,000 + VAT

Reconciliation and Refunding of Application Fees for Connection and Use of System
Agreements

Application Fees will be reconciled and / or refunded In accordance with Chapter 7 of The
Statement of the Use of System Charging Methodology.

22
 April 2013 The Statement of Use of System Charges

Entry Application Fees for New Bilateral Agreements

D o u n re a y
T h u rso B O U N D A R IE S O F I N F L U E N C E

Offshore S to rn o w a y
C a s sl e y D u n b e a th Onshore M y b st e r
S C O T T IS H & S O U T H E R N B O U N D A R Y O F
INF LU E N CE O N S C O T T IS H P O W E R

Offshore
(Indicative only) S h in
L a irg

(Indicative or fixed)
B ro ra
(Indicative only) 400kV
275kV
S u b s ta tio n s
S u b s ta tio n s
132kV S u b s ta tio n s
4 00 kV C IR C U IT S

ZONE C
M o s s f o rd D in g w a ll
G ru d g ie
B rid g e
C on o n
A ln e s s F ra s e rb u rg h 2 75kV C IR C U IT S
F ra se rb u rg h
L u i ch a rt
O rr in E lg in
M a cd u ff
1 32 kV C IR C U IT S
K e ith S t. F e r g u s
D e a n ie S tr ic h e n
C u l lig r a n In v ern ess N a i rn
A lg a s
K ilm o ra c k M a j o r G e n e r a t i n g S ite s

G re a t
Zone C
F a s n a ky le
B e a u ly B la c k h illo ck

Base D yc e Rate /MW

P e te rh e a d I n c l u d in g P u m p e d S to ra g e

G le n
K in t o re P e r sl e y
C o n n e c te d a t 40 0 kV
New App <100 35,000 260
W ood W i llo w d a le

Connecting to Zone C
F o y e rs
C o n n e c te d a t 27 5 kV
Connecting
H y dto
r o GZone
B oat of H ill
F o rt G a rte n C l a y h ills
A u g u stu s
T a rla n d C ra ig ie b u ck le r
R e d m o ss
e n e ra tio n
I n v e r g a rry

100-1320 55,000 125 C

Q u o ich

F ort

Per Connection Site 110,000 W i llia m F id d e s

Per Connection Site 110,000

0
R a n no ch

T um me l
B rid g e
E rr o c h ty
>1320 P it io c h ry

C lu n ie

T e a lin g
160,000
L un a H e a d
B rid g e o f D u n 55
S C O T T IS H & S O U T H E R N / S C O T T I S H
P OW E R A REA BO UND A RY
C a s h le y
D u d ho p e A rb r o a th
L och ay
L y n d h u rs t M il to n o f C ra ig ie

K ilc h re n n a n K ill in C h a rlsto n

F in la rig B u r g h m u ir D u dh o pe
D a lm a lly G le n a g n e s
S C O T T IS H P O W E R B O U N D A R Y O F
S t. F illa n s
N an t
C la c h a n IN F LU E N C E O N S C O T T IS H & S O U T HE RN
B ra co
I n v e r a ra y
S lo y
G le n ro t h e s

W e s tf ie ld

P o rt K in c a rd in e S C O T T IS H P O W E R / N A T I O N A L G R ID A R E A
Ann Lo n g an n e t T o rn e s s
D evol W in d y h ill B o n n yb rid g e
G ra n g e m o u th B O U N DA RY
C o c k e n zie
M oor S ig h t h ill
I n v e r kip E a s te r h o u se

D u n oo n N e w a r th ill
N e ils o n C ume
S m e a to n

W is h a w
H u n t e rs to n e
S tra t h a v e n

L i n m ill E c c le s
C a r ra d a le
K ilm a rn o c k
S o u th

A yr

ZONE B
E lv a n fo o t
C o yl to n

B ly th

Zone B
A u c h e n c ro sh
H a r ke r
Base F o u r s to n e s

S te lla
Rate /MW T y n e m o u th
S o u th S h ie ld s
W e st W e s t B o ld o n

Connecting to Zone B New App <100 25,000 180 O ffe rto n

H a w t h o r n e P it
H a rt M o o r Connecting to Zone B
S p e n n ym o o r

100-1320 40,000 90
H a r tl e p o o l
S a lth o lm e T o d P o in t
G ra n g e to w n
N o r to n G re y s to n e s

Per Connection Site 72,000

72,000 >1320 120,000 35 L a c ke n b y
Per Connection Site 72,000
H u tto n

H e ys h a m Q u e rn m o re
P o p p le to n O s b a l d w ick
N G C B O U ND A R Y O F INF LU E NCE
O N SC OT TISH P O W ER
T h o r n to n
B ra d f o rd
S ta n a h W e st K ir k s ta ll
S k e l to n C re yk e B e c k
P a d ih a m G ra n g e M onk
F ry s t o n S a lt e n d N o rth
S a lte n d S o u th
P e n w o rth a m D rax
E lla n d K illin g h o lm e
E g g b o ro u g h H u m b e r R e fin e ry
R o c h d a le F e r ry b r id g e
K e ad b y S o u th
W a sh w a y
K e a rs le y W h ite g a te T e m p l e b o ro u g h T h o rp e H um b e r
F a rm W es t
K ir kb y M a rs h Bank G r i m sb y
S o u th M e lto n
L is te r S ta ly b r id g e W e st
W yl fa M a n c h e s te r S to c k sb rid g e P it s m o o r W est
D r iv e R a i n h ill A ld w a rk e
C a r rin g to n B re d b u ry W in c o B a n k B u rto n
B irk e n h e a d T h u rc ro ft
N e e p se n d
F i d d le rs D aine s S h e ff ie ld C ity
F e r ry
B rin s w o rth C o t ta m
C a p e n h u rst F ro d s h a m J o rd a n t h o rp e
N o rt o n L e e s
P e n tir M a c c le s fie ld
C h e st e r fie ld

ZONE A
D e e s id e H ig h
D in o rw ig M a rn h a m

S ta y t h o rp e
L e g a cy C e lla rh e a d
F fe s t in io g

W i lli n g to n
T ra w s fy n y d d R a t c lif fe

Zone A Base
I ro n b ri d g e
R u g e le y
Rate /MW D ra k e lo w
S p a ld in g
N o r th
W a lp o le

N o r w ic h
B u s h b u ry M a in

New App <100 15,000 100

W i lle n h a ll B u st le h o lm

Connecting to Zone A
S h re w s b u ry

Connecting to Zone A
P e nn H am s E n d e rb y
N e c h e lls
H a ll
O ck e r
H ill C o v e n try

100-1320 25,000 55
O ld b u ry
K it w e ll B e r k s w e ll

S i z e w e ll
B u r w e ll

Per Connection Site 45,000 F e ck e n h a m G re n d o n

Per Connection Site M a in
45,000
>1320 80,000 15
B ish o p s E a to n
W oo d S o co n

P a tf o rd B ra m f o rd
B rid g e
E ast
C la y d o n S un d o n
P e lh a m
W y m o n d le y
L e ig h to n B ra in tre e
R a s sa u B u zz a rd
W alha m R ye H o u se W a lt h a m
I m p e r ia l B rim s d o w n C ro ss
P a rk C o w le y
S w a n se a W a tf o rd E ls tr e e H a ck n e y
P e m b ro k e A m e r sh a m M a in
N o r th
C ilfy n y d d C u lh a m T o tte n h a m R a y le ig h M a in
B a g la n W h it s o n M ill H ill R e d b r id g e W a r le y
M in e ty D id c o t
Bay U pp e r B o a t U s km o u th I ro n A c to n W ille sd e n W e s t T h u r ro ck
M arga m B a rk in g C o ry to n
A lp h a S te e l Iv e r E a lin g N o r th fle e t E a st
P y le N .H y d e S in g l e w e ll
S e a ba n k C it y R d W .H a m T ilb u ry G ra in

C o w b r id g e S t J o hn s H u rs t
T re m o rfa L a le h a m W o od N ew N o r th fle e t K in g s n o rth
C ro s s W est
A b e r th a w C a r d iff
E a st W e st K e m s le y
M e l ks h a m B ra m l e y C h e s sin g to n R o w d ow n L it tl e b ro o k
W e y b r id g e
B e d d in g to n C a n t e rb u ry
F le e t W im b le d o n N o r th

H in k le y P o in t
S e llin d g e
B rid g w a te r

A lv e r d is c o tt
B o ln e y

T a u n to n N u r s lin g E de F

D un g en e ss
Lo ved e a n N in f ie ld
A x m in st e r
M a n n in g to n F a w le y B o tl e y W o o d
E xe te r

C h i c k e re ll

A b h am
L a n d u lp h
I n d ia n
Q u e e ns
IS S U E B 4 -04 -08 41 /1 7 7 0 89 C C o ll in s B a rth o lo m e w L td 1 9 9 9

1. New Onshore Application Fee = Base + (MW * Rate)

2. TEC Increase1 = Base + (TEC Increase * Rate)
3. New Offshore Application Fee = Number of offshore Connection Sites * Fee

1
The base value and Rate used are the values associated with the change in TEC not the resulting total TEC
being applied for.

23
The Statement of Use of System Charges April 2013

Table 4.1

This table details the adjustments applicable for certain scenarios to be taken into
consideration when calculating the value of an Entry Application Fee.

Other Entry Fees Fraction of New

Application Fee
Modification Application (applicable for any change prior to
completion excluding TEC increases and those options 0.75
listed in this table)
Request for Design Variation in addition to standard offer 1.5
Embedded Generation New Application 0.3
Embedded Generation Modification Application 0.2
Entry Fees (cont.) Zone A Zone B Zone C
TEC Exchange Request (no system works) 10,000 10,000 17,000
Request for STTEC or SNSTF 10,000
Directly Connected Reactive Only Service Provider 20,000 21,000 22,000
Suppliers and Interconnector Users 5,000
Assign, transfer or novate a bilateral agreement or minor
3,000
admin changes

If applying for a combination of changes after making an initial application and this is prior to
the completion of works associated to the initial application, such as a change to works or
completion date that also includes a TEC Change, the Application Fee will be the higher of
the TEC Change Fee or Modification Application Fee.

24
 April 2013 The Statement of Use of System Charges

Table 4.2

Limited Duration TEC Agreement

Duration of
(LDTEC) Zone (000) Type (as Table
LDTEC (t)
C)

t <= 3 months 10 + VAT

Basic request fee
3 months < t <= 6 15 + VAT
for duration t
months
(applicable to all
requests for LDTEC 6 months < t <= 9 20 + VAT
Offers) months

t > 9 months 30 + VAT

t <= 3 months 1 + VAT

Additional fee for
rolling assessment 3 months < t <= 6 1.5 + VAT
Bilateral
months
14 (applicable to a Connection
All
request for an Agreement /
6 months < t <= 9 2 + VAT
LDTEC Indicative BEGA
months
Block Offer)
t > 9 months 3 + VAT

Additional fee for t <= 3 months 5 + VAT

combined
applications 3 months < t <= 6 7.5 + VAT
(applicable to a months
combined request for
an LDTEC Block 6 months < t <= 9 10 + VAT
Offer and an LDTEC months
Indicative Block
Offer) t > 9 months 15 + VAT

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The Statement of Use of System Charges April 2013

Table 4.3

Temporary TEC Exchange Rate Request Fees Duration of

Temporary
Exchange period (t)

t <= 3 months 15,000

3 months < t <= 6 25,000

months
15 Application fee for Temporary TEC
Exchange Rate Requests 6 months < t <= 9 30,000
months

t > 9 months 45,000

Exit Application Fees for New Bilateral Agreements and Modifications to existing
Bilateral Agreements

Table 4.4

Exit Fees Zone A Zone B Zone C

<100MW >100MW <100MW >100MW
New Supply Point 37,000 41,000 52,000 38,000 60,000
Modification Application 28,000 31,000 39,000 29,000 45,000

Table 4.5

Exit Fees (cont.) Zone A Zone B Zone C

Statement of Works at existing supply point 2,750 3,000 1,000
Modification Application after Request for Statement of 7,500 8,500 4,500
Works

Complex Project Progression * 15,000 16,500 17,200

* Complex fees apply where significant network assessment is identified at Statement of

Works stage.

Examples

1. Entry Application Fee for a New Bilateral Agreement onshore

300MW Generator wishing to connect to the transmission system in Zone A
Application Fee = 25,000 + (300 * 55) = 41,500

2. Entry Application Fee for a New Bilateral Agreement offshore

2000MW Generator wishing to connect to the transmission system in Zone B.
Two Connection Sites

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 April 2013 The Statement of Use of System Charges

Application Fee = 2 * 72,000 = 144,000

3. Entry Application Fee for a Modification to an existing Bilateral Agreement

300MW Generator in Zone A seeking to alter commissioning date
This would be a Modification Application
Fee = 0.75 * (25,000 + (300 * 55)) = 31,125

4. Entry Application Fee for an embedded generator (BEGA/ BELLA)

300MW embedded generator requesting a BEGA in Zone A
Fee = 0.3 * (25,000 + (300 * 55)) = 12,450

5. Entry Application Fee for a TEC Increase

400MW generator in Zone A wishes to increase TEC by 20MW to 420MW
Application Fee = 15,000 + (20 * 100) = 17,000

6. Entry Application Fee for a change to completion date

500MW generator in Zone B wishes to change their completion date by moving it back by 12
months

Application Fee = 0.75 * (40,000 + (500 * 90)) = 63,750

7. Entry Application Fee for a Decrease TEC

600MW generator in Zone C wishes to decrease TEC by 100MW to 500MW

Application Fee = 0.75 * (55,000 + (100 * 125)) = 50,625

Table 4.6

Bilateral Agreement Types

Bilateral Agreement Type Description

Bilateral Connection Agreement In respect of Connection Sites of Users.

For generators that own or are responsible for

Bilateral Embedded Licence
embedded exemptable large power stations (another
Exemptable Large Power
party may be responsible for the output under the CUSC
Station Agreement (BELLA)
and BSC).

For generators and BSC parties with embedded power

Bilateral Embedded stations, excluding those which are exempt (unless they
Generation Agreement (BEGA) otherwise choose to be), who are responsible for the
output onto a Distribution System.

In respect of parties that are applying for new or

Construction Agreement
modified agreements up until the time of commissioning.

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The Statement of Use of System Charges April 2013

Table 4.7

Generator Types

The definitions provided below have been extracted from the Grid Code and are provided for
ease of reference within this document.

Type of Plant Definition

Having a direct connection to a User System or the System

of any other User to which Customers and/or Power Stations
are connected, such connection being either a direct
Embedded
connection or a connection via a busbar of another User or
of a Transmission Licensee (but with no other connection to
the National Electricity Transmission System).
A Power Station in NGETs Transmission Area with a
Registered Capacity of less than 50MW, a Power Station in
Small Power Station SPTs Transmission Area with a Registered Capacity of less
than 30MW or a Power Station in SHE Ts Transmission
Area with a Registered Capacity of less than 10 MW.

A Power Station in NGETs Transmission Area with a

Medium Power Station Registered Capacity of 50MW or more, but less than
100MW.

A Power Station in NGETs Transmission Area with a

Registered Capacity of 100MW or more or a Power Station
in SPTs Transmission Area with a Registered Capacity of
Large Power Station
30 MW or more; or a Power Station in SHE Ts
Transmission Area with a Registered Capacity of 10 MW or
more.

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 April 2013 The Statement of Use of System Charges

Schedule 4
Charge-Out Rates for Engineering Charges for Variable Price Applications

Appropriately qualified staff will be appointed to process applications and feasibility studies and
carry out work in relation to the development of the National Electricity Transmission System.
Travel, subsistence and computing costs will also be charged on an actual basis. It should be
noted that these rates only apply to work carried out by the Transmission Licensees in relation
to licensed transmission activities. Different rates may apply when asked to quote for other
work.

Table 5.1

/day
National
SPT SHE T
Grid
Section Manager
940 893 895
Internal Solicitor

Principal Power System Engineer 745 748 750

Senior Power System Engineer

Project Manager
605 624 625
Account Manager
Senior Wayleave Officer

Power System Design Engineer

480 498 500
Draughtsman

Graduate Engineer 405 418 420

Administrative Support 325 330 330

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The Statement of Use of System Charges April 2013

Schedule 5
Non-Capital Components applicable for Maintenance and Transmission Running Costs in
Connection Charges for 2013/14

The non-capital component of the connection charge is divided into two parts, as set out below.

Part A: Site Specific Maintenance Charges

Site-specific maintenance charges will be calculated each year based on the forecast total site
specific maintenance for GB divided by the total GAV of the transmission licensees GB
connection assets, to arrive at a percentage of total GAV. For 2013/14 this will be 0.37%.

Part B: Transmission Running Costs

The Transmission Running Cost (TRC) factor is calculated at the beginning of each price control
to reflect the appropriate amount of other Transmission Running Costs (rates, operation, indirect
overheads) incurred by the transmission licensees that should be attributed to connection
assets.

The TRC factor is calculated by taking a proportion of the forecast Transmission Running Costs
for the transmission licensees (based on operational expenditure figures from the latest price
control) that corresponds with the proportion of the transmission licensees total connection
assets as a function of their total business GAV. This cost factor is therefore expressed as a
percentage of an asset's GAV and will be fixed for the entirety of the price control period. For
2013/14 this will be 1.47%.

To illustrate the calculation, the following example uses the average operating expenditure from
the published price control and the connection assets of each transmission licensee expressed
as a percentage of their total system GAV to arrive at a GB TRC of 1.47%:

Example:

Connection assets as a percentage of total system GAV for each TO:

Scottish Power Transmission Ltd 18.6%

Scottish Hydro Transmission Ltd 7.5%
National Grid 16.3%

Published current price control average annual operating expenditure (m):

Scottish Power Transmission Ltd 43.4

Scottish Hydro Transmission Ltd 33.1
National Grid 317.1

Total GB Connection GAV = 3.38bn

GB TRC Factor = (18.6% x 43.4m + 7.5% x 33.1m + 16.3% x 317.1m) / 3.38bn
GB TRC Factor = 1.84%
Net GB TRC Factor = Gross GB TRC Factor Site Specific Maintenance Factor*

Net GB TRC Factor = 1.84% - 0.37% = 1.47%

* Note the Site Specific Maintenance Factor used to calculate the TRC Factor is that which applies for the first year
of the price control period or in this example, is the 2013/14 Site Specific Maintenance Factor of 0.37%.

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 April 2013 The Statement of Use of System Charges

Illustrative Connection Asset Charges

An indication of First Year Connection Asset Charges for new connection assets using
estimates of Gross Asset Values are outlined in Appendix 1. Additional examples of connection
charge calculations are included in Appendix 2 of this Statement to provide some general
illustrations of how connection charge calculations are applied.

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The Statement of Use of System Charges April 2013

Appendix 1: Illustrative Connection Asset Charges

2013/14 First Year Connection Charges based on the RPI Method (6% rate of return)

The following table provides an indication of typical charges for new connection assets. Before
using the table, it is important to read through the notes below as they explain the assumptions
used in calculating the figures.

Calculation of Gross Asset Value (GAV)

The GAV figures in the following table were calculated using the following assumptions:

Each asset is new

The GAV includes estimated costs of construction, engineering, Interest During Construction
and Liquidated Damages premiums

For details of the Calculation of the Gross Asset Value, see Chapter 2 of The Statement of the
Connection Charging Methodology (Section 14 Part I of the Connection and Use of System
Code).

Calculation of first year connection charge

The first year connection charges in the following table were calculated using the following
assumptions:

The assets are new

The assets are depreciated over 40 years
The rate of return is assumed to be 6% for RPI indexation
The connection charges include maintenance costs at the 2013/14 rate of 0.37% of the GAV
The connection charges include Transmission Running Costs at the 2013/14 rate of 1.47%
of the GAV

For details of the Basic Annual Connection Charge Formula, see Chapter 2 of The Statement of
the Connection Charging Methodology (Section 14 Part I of the Connection and Use of System
Code).

Please note that the actual charges will depend on the specific assets at a site. Charges
applicable to specific works will be detailed in the Users Bilateral Connection Agreement.
Agreement specific GAVs and NAVs for each User will be made available on request.

Notes on Assets

The charges for Double and Single Busbar Bays include electrical and civil costs.

Transformer cable ratings are based on winter soil conditions.

In this example, transformer charges include civil costs of plinth and noise enclosure and
estimated transport costs, but not costs of oil dump tank and fire trap moat. Transport costs do
not include hiring heavy load sea transportation or roll-on roll-off ships.

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 April 2013 The Statement of Use of System Charges

000s
400kV 275kV 132kV
GAV Charge GAV Charge GAV Charge
Double Busbar Bay 2490 259 2040 212 680 71
Single Busbar Bay 1980 206 500 52

Transformer Cables 100m

(incl. Cable sealing ends)
120MVA 1080 112 350 36
180MVA 1650 171 1080 112 360 37
240MVA 1690 176 1090 113 390 41
750MVA 1710 178 1260 131

Transformers
45MVA 132/66kV 1219 127
90MVA 132/33kV 1173 122
120MVA 275/33kV 2617 272
180MVA 275/66kV 2688 279
180MVA 275/132kV 2760 287
240MVA 275/132kV 2832 294
240MVA 400/132kV 3626 377

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The Statement of Use of System Charges April 2013

Connection Examples

Example 1
NEW SUPERGRID CONNECTION
SINGLE SWITCH MESH TYPE

Transmission
Voltage

A A

B B
Lower
Voltage

C C

SCHEDULE FOR NEW CONNECTION

275/132kV 400/132kV

First Year First Year

Charges Charges
Ref Description (000s) Description (000s)
KEY:
Existing Transmission Assets (infrastructure)
A 2 x 180MVA Transformers 574 2 x 240MVA Transformers 754

New Transmission Assets (infrastructure)

B 2 x 100m 180MVA Cables 74 2 x 100m 240MVA Cables 82
New connection assets wholly charged to
C 2 x 132kV Double Busbar 2 x 132kV Double Busbar
customer 142
Transformer Bays Transformer Bays 142
Customer Assets

Total 790 Total 978

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 April 2013 The Statement of Use of System Charges

Example 2

NEW SUPERGRID CONNECTION

DOUBLE BUSBAR TYPE

Transmission
Voltage

A A

B B

Lower
Voltage
C C

D D

SCHEDULE FOR NEW CONNECTION

275/132kV 400/132kV

First Year First Year

Charges Charges
Ref Description (000s) Description (000s)
KEY:
A 2 x 275kV Double Busbar 424 2 x 400kV Double Busbar 518
Existing Transmission Assets (infrastructure)
Transformer Bays Transformer Bays

New Transmission Assets (infrastructure) B 2 x 180MVA Transformers 574 2 x 240MVA Transformers 754

New connection assets wholly charged to C 2 x 100m 180MVA Cables 74 2 x 100m 240MVA Cables 82
customer
Customer Assets D 2 x 132kV Double Busbar 142 2 x 132kV Double Busbar 142
Transformer Bays Transformer Bays

Total 1214 Total 1496

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The Statement of Use of System Charges April 2013

Example 3
EXTENSION OF SINGLE SWITCH MESH
TO FOUR SWITCH MESH
(extension to single user site)

Transmission
Voltage

A A

B B

C C
Lower
Voltage

D D

SCHEDULE FOR NEW CONNECTION

275/132kV 400/132kV

First Year First Year

KEY: Charges Charges
Ref Description (000s) Description (000s)
Existing Transmission Assets (infrastructure)

New Transmission Assets (infrastructure) A 2 x 100m 180MVA Cables 224 2 x 100m 240MVA Cables 352
New connection assets wholly charged to
customer
B 2 x 180MVA Transformers 574 2 x 240MVA Transformers 754
Existing connection assets wholly charged to
another user C 2 x 100m 180MVA Cables 74 2 x 100m 240MVA Cables 82
Customer Assets
D 2 x 132kV Double Busbar 142 2 x 132kV Double Busbar 142
Transformer Bays Transformer Bays
Other Users Assets

Total 1014 Total 1330

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 April 2013 The Statement of Use of System Charges

Appendix 2: Examples of Connection Charge

Calculations
The following examples of connection charge calculations are intended as general illustrations.

Example 1

This example illustrates the method of calculating the first year connection charge for a given
asset value. This method of calculation is applicable to indicative price agreements for new
connections, utilising the RPI method of charging, and assuming:

i) the asset is commissioned on 1 April 2013

ii) there is no inflation from year to year i.e. GAV remains constant
iii) the site specific maintenance charge component remains constant throughout the 40
years at 0.37% of GAV
iv) the Transmission Running Cost component remains constant throughout the 40 years
at 1.47% of GAV
v) the asset is depreciated over 40 years
vi) the rate of return charge remains constant at 6% for the 40 year life of the asset
vii) the asset is terminated at the end of its 40 year life

For the purpose of this example, the asset on which charges are based has a Gross Asset
Value of 3,000,000 on 1 April 2013.

Charge Calculation
Site Specific Maintenance Charge 3,000,000 x 0.37% 11,100
(0.37% of GAV)

Transmission Running Cost 3,000,000 x 1.47% 44,100

(1.47% of GAV)

Capital charge 3,000,000 x 2.5% 75,000

(40 year depreciation 2.5% of GAV)

Return on mid-year NAV 2,962,500 x 6% 177,750

(6%)

TOTAL 307,950

The first year charge of 307,950 would reduce in subsequent years as the NAV of the asset is
reduced on a straight-line basis, assuming a zero rate of inflation.

This gives the following annual charges over time (assuming no inflation):

Year Charge

1 307,950
2 303,450
10 267,450
40 132,450

Based on this example, charges of this form would be payable until 31 March 2053.

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The Statement of Use of System Charges April 2013

Example 2

The previous example assumes that the asset is commissioned on 1 April 2013. If it is assumed
that the asset is commissioned on 1 July 2013, the first year charge would equal 9/12th of the
first year annual connection charge i.e. 230,962.50

This gives the following annual charges over time:

Year Charge

1 230,962 (connection charge for period July 2013 to March 2014)

2 303,450
10 267,450
40 132,450

Example 3

In the case of a firm price agreement, there will be two elements in the connection charge, a
finance component and a running cost component. These encompass the four elements set out
in the examples above. Using exactly the same assumptions as those in example 1 above, the
total annual connection charges will be the same as those presented. These charges will not
change as a result of the adoption of a different charging methodology by National Grid,
providing that the connection boundary does not change.

Example 4

If a User has chosen a 20-year depreciation period for their Post Vesting connection
assets and subsequently remains connected at the site beyond the twentieth year their
charges are calculated as follows.

For years 21-40 they will pay a connection charge based on the following formula:

Annual Connection Chargen = SSFn (RPIGAVn)+ TCn (GAVn)

The NAV will be zero and the asset will be fully depreciated so there will be no rate of return or
depreciation element to the charge.

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 April 2013 The Statement of Use of System Charges

Index to the Statement of Use of System Charges (Issue 9) Revisions

Issue 9 Modifications Changes to Pages

Original
0 -

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